Calculate the real rate of return
Question: Last year, you earned a rate of return of 8.13% on your bond investments. During that time the inflations was 3.68%. Calculate the real rate of return?
[A] 10.62%
[B] 11.81%
[C] 12.11%
[D] 4.29%
[E] 4.45%
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Last year, you earned a rate of return of 8.13% on your bond investments. During that time the inflations was 3.68%. Calculate the real rate of return?
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Beachwear' n More bonds have a 9.5% coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315. The bonds mature in eight years.
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